Anti-Money Laundering Challenges Faced When Onboarding High-Net Worth and Ultra High-Net-Worth Chinese Clients

Wing-Chi Leung, CAMS-FCI

This white paper examines the anti-money laundering and know-your-client challenges faced by financial institutions when onboarding wealthy Chinese clients.

China has become an economic power since the late 20th century, and as such, many of its citizens became very wealthy. With wealth come opportunities for people to choose a better standard of living, such as to live in a cleaner environment or provide better education for their children. Many wealthy Chinese have chosen to leave China and bring their wealth with them when they settle in their adopted countries.

The concerns that arise when onboarding wealthy Chinese clients for financial institutions include questions around how clients get their monies out of China when there are controls over funds exiting the country, as well as their source of wealth.

This paper provides examples of how money exits China, the common typologies of wealthy Chinese clients, and some solutions to help gain comfort when conducting know-your-client due diligence.

Download PDF